Posted by Mr. Capital on April 23, 2000 at 20:34:17:
Not Bad for a Ex-Realtor.
I’m impressed.
Advice on Selling Vacant Property. - Posted by Ben Buckley
Posted by Ben Buckley on April 23, 2000 at 16:49:14:
Recently I was talking to my grandmother about my intrest in REI and she told me that she has been trying to sell a piece of vacant land but the agent that she hired has not been able to sell the property. So she asked me if I would like a shot at selling it and I accepted. So I have a few questions.
First I will describe the property. It is a large lot that has all the utilities and septic tank set up. It is on the water, a lagoon, and the bulk head is new. Although the dock needs to be replaced. The lot is in a private retirement community with nice homes with some restrictions. The community is on an island in the Puget Sound.
So here are my questions, “What is the best way to advertise and market this property?”, “What do I do when we do strike a deal with another party?”, and “What fees will I have to pay at closing”, and finally “Are there any hidden things to watch for?”.
The reason why i think that the agent did not sell the property was because the property is about 30 miles away from the city and with the property only listing at 90,000 or so the agent can spend there time in more productive deals with homes in the city that sell for 200,000+. I don’t think that they wanted to drive all the way up to the property to make such a small comission. This is just an idead though.
So as you can see I can use all the advice you have for me and I thank you for your time.
Sincerely, Ben Buckley Seattle,Wa
Re: Advice on Selling Vacant Property. - Posted by Mike O
Posted by Mike O on April 24, 2000 at 23:15:12:
Ben,
Is the property owned free and clear? If so change it from vacant land to new construction. Go to a bank get financing, and build a new home. increase you profit, I’m sure it will market better. Also if the property is owned free and clear I don’t think you will have much of a problem getting bank financing to build a new house. Just an idea to kick around.
Mike O
Re: Advice on Selling Vacant Property. - Posted by Russ Sims
Posted by Russ Sims on April 24, 2000 at 11:13:36:
Ben:
For closing costs figure on the Wa. State excise tax of 1.7% of the selling price, 1/2 of escrow fee and at least 1/2 of the title insurance policy…call Fidelity Title (or Chicago Title, or any of 'em for that fact). They’ll be happy to give you estimated closing costs and while you’re at it ask them what services they offer to people selling their home “by owner”. They will help “de-mistify” the process for you. Good luck! Russ Sims
Re: Advice on Selling Vacant Property. - Posted by Ben (NJ)
Posted by Ben (NJ) on April 23, 2000 at 22:18:30:
A friend of mine picks up vacant lots all the time at tax deed sales. He sells most of them immediately by offering long term owner financing, (small down payment, 10% interest). He also sells them all FSBO.
Re: Advice on Selling Vacant Property. - Posted by Eduardo (OR)
Posted by Eduardo (OR) on April 23, 2000 at 17:32:25:
Ben–
Several quick comments: 1. I was a real estate broker for 15 years. 9 times out 10, the reason a property doesn’t sell is that it is overpriced. 2. The 10th time is because the real estate agent is a dud. This means change real estate agents. How do you find a good real estate agent? You go talk to the broker of one or two of the biggest firms nearby. You ask them for the names of their top agents specializing in your kind of property. You interview two or three agents and obtain in writing a market analysis from each giving their estimate of a price to list property at. You also obtain in writing an estimate of net to you after all closing expenses if property sells. 3. Don’t pick anyone with less than five years full-time experience in the business. The average property in a normal market sells for 5% less than the listed price. Consider choosing the agent who gives you the lowest estimate of property’s value (many agents, especially new ones, over-estimate the price just to get the listing). List for no more than 3-6 months. Commission is always negotiable (many agents will lie and say it isn’t). Pick most compatible agent. About 10-20% of agents do 80-90% of all business. 4. Last, if your grandmother wants to sell it herself (with your help), work out the bottom line net return to her using your methods. If an agent can do as good, hire the agent. Most FSBO’s (the majority of For-Sale-By-Owners) end up with less money in their pocket than if an agent sold the property for them. Many of them end up with lawsuits on their hands as well. I mean inexperienced FSBO’s like you and your grandmother apparently are (not the investors who frequent this site). How many properties have you sold in the past? A good agent can do the paperwork, keep the deal together and hold your hand through the closing. My thoughts. Good luck. --Eduardo